Assume that the perpetuity pays $100 per year at an interest rate of 8%; the...
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Assume that the perpetuity pays $100 per year at an interest rate of 8%; the present value of the perpetuity is _______.
PV = $100/0.08 = $1,250
PV = $100 x 1.08 = $108
C = $100 x 0.08 = $8
C = $100/1.08 = $92.59
There is not enough information to calculate the answer.
Assume that the perpetuity pays $100 per year at an interest rate of 8%; the present value of the perpetuity is _______.
| PV = $100/0.08 = $1,250 | ||
| PV = $100 x 1.08 = $108 | ||
| C = $100 x 0.08 = $8 | ||
| C = $100/1.08 = $92.59 | ||
| There is not enough information to calculate the answer. |
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